Finding Text
Administration for Children and Families Federal Financial Assistance Listing #93.566, 2302SDRCMA, 10/01/2022 – 9/30/2024 Federal Financial Assistance Listing #93.566, 2402SDRCMA, 10/01/2023 – 9/30/2026 Refugee and Entrant Assistance – State Administered Programs Eligibility Significant Deficiency in Internal Control over Compliance Criteria: 2 CFR 200.303(a) establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. Condition: Two instances were identified where the participant was underpaid based upon eligibility for one month (2 participant files). Cause: The participant in each case obtained employment and no monthly redetermination form was completed to ensure the participant no longer was eligible to receive the monthly cash assistance. Additionally, the Organization experienced an increase in refugee arrivals at the beginning of the fiscal year creating an increase in the workload of staff members. Effect: Ineffective controls over this area of compliance could result in a reasonable possibility that the Organization would provide services to ineligible participants and the Organization would not detect ineligibility in a timely manner. Questioned Costs: None reported. The grant was under allocated. Context/Sampling: A nonstatistical sample of 60 participant case files out of more than 250 participant case files were selected for testing which included $149,528 of participant payments out of $668,330. Repeat Finding from Prior Year: Yes, prior year finding 2024‐003 Recommendation: We recommend management review the Organization’s policies, procedures and controls over eligibility with applicable program employees to ensure compliance with the federal program. View of Responsible Officials: Management is in agreement.